Knights Corner is not exactly Larrabee but the idea behind both are very similar. A large number of GPGPUs are integrated with a CPU, Intel is using a Xeon core now as opposed to a Pentium; with the GPGPUs hooked up in a similar method to Larrabee's ring of Pentium cores. The design is proven as they have sold units of the previous generation Kights Ferry and offers a feature that a lot of programmers are going to appreciate; instead of needing to learn a new language like CUDA or OpenCL, standard x86 scalar code is used to program these chips. This architecture is also expected to scale very well, for as ARM recently pointed out only specific multithreaded applications continue to scale well as more cores are added. Drop by The Inquirer for more information.

They will likely be sold as PCIe card like the Knights Ferry card pictured above.

"CHIPMAKER Intel has announced its second generation hybrid core technology codenamed 'Knights Corner'.

Knights Corner is Intel's second chip in its Many Integrated Core (MIC) chip line and will feature Xeon X86 cores and more than 50 GPGPU cores loosely based on what was previously known as Larrabee. Knights Corner will be fabricated using Intel's 22nm tri-gate process node beginning in 2012, though the firm would not be drawn on the exact core count at this time."